Score 9 (out of 10): EATON CORP PLC poised to seasonally rally by +8.2% during the next 90 days.

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What’s Going On Here?

Eaton Corp is a power management company which provides energy-efficient solutions. The company reported third quarter earnings of $1.75, above expectations of $1.73. Earnings were up +30% YoY. The aerospace segment is increasing currently at +37.9% YoY. Eaton Corp’s management provided guidance of 7-9% organic revenue growth for Q4 for the company overall.

Why Now?

EATON CORP PLC indicates an interesting 90 days seasonal set up. During similar occasions, EATON CORP PLC shares had a median return of +8.2% – based on 10 historical occasions with 10 of those showing positive returns (100%). This buy signal for EATON CORP PLC received a high score of 9 (out of 10). This insight was generated with last price of 170.46.

What’s This Company About?

EATON CORP PLC is in the Diversified Manufact Op business. Based on the last 2 years’ risk/return profile, this asset is seen as Less Risky. ‘Wall Street’ analysts think the stock price will be worth 6% more (average). Ticker symbol: ETN US.

What’s My Risk / Reward and Time Horizon?

We found 90 days to be the optimal trade horizon, after testing a number of possible alternatives (accuracy of previous returns). Otherwise consider closing out this trade once the target level of 184.38 (+8.2%) has been reached. Based on EATON CORP PLC’s recent up and down swings, LongShortBets suggests considering to set a stop loss level for this insight at 161.96 (last price at 170.46), which is equivalent to a -5% decline.

Returns during similar periods:

The chart above shows the previous returns (in %) based on similar setups with the most recent ‘insight’ shown under (1), the second most recent ‘insight’ shown under (2), etc. 

Previous episodes:

19.9% (December-2021), 1.2% (December-2020), 12% (December-2019), 4.8% (December-2018), 2.7% (December-2017), 11.5% (December-2016), 3.5% (December-2015), 6% (December-2014), 17.5% (December- 2013), 10.3% (December-2012)

Historical Chart:

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Summary:

NameEATON CORP PLC
ViewUp
Star (1 to 10)9
Target+8.2%
Time90 days
Hit Rate100%

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